Replies to post #53 on Complete Production Services (CPX)

[OilStockReport]

CPX is a top buy.

Complete Production Services (CPX) -

While Marathon Oil may be an integrated with upside, Complete Production may be the oil company with the most upside overall.
CPX has dropped off its highs and settled at a great support line above its moving averages and an upward channel bottom line. This movement comes as CPX is about to increase EPS from -0.04 to 0.50 and grow revenue nearly 60%. Despite a 26 P/E ratio, a swing to profits in Q1 and gains in 2011 will drop the company’s future P/E to below 10.

Therefore, that means that the price of the stock definitely needs to start to make up for a significant gain in earnings. Its competitors like Key Energy (KEY), Basic Energy (BAS) and Baker Hughes (BHI) all have future P/E ratios well above this level, and CPX looks like it will soon be far outside the normal levels for oil/gas drilling.

Exploration companies are seeing significant increases in demand at these levels because higher prices mean oil companies want to put more supply on the market to take advantage of the higher price. CPX is well positioned not only to see gains in Q1, but throughout the year. They are estimated to increase revenue over 35% and more than double EPS for the full year.
This is a tremendous mid-cap value for a company with low shares and great growth prospects.